For the past two months, pending homes sales have noticed a significant decline, but in May they raised by 44.3% compared to April, according to the NAR (National Association of Realtors). The NAR states that this recovery is the largest since 2001.
Last year, contract signing was still down 5.1% which shows that declines in March and April were large and May demonstrated great recovery. Experts now expect existing-home sales to rose 4.93M units and new home sales to reach 690,000 units.
It is exciting to think that since the increasing home sale closings in May, we might not see any meaningful downturn for the months to come. It seems that homebuyers are encouraged and eager to return to the housing market, like the busy period of spring was delayed this year due to coronavirus.
Despite the fact that buyers are going out to see whats out there, sellers are still waiting to list their properties, so the supply isn't meeting the demand. As a result, part of what we're seeing is bidding wars between buyers.
New home sales are also slowly increasing, but the pending existing homes are a much important indicator of how the market is recovering, which leads to believe that Jun and July will have even better results.
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